Peer Effects in Product Adoption

Michael Bailey, Drew Johnston, Theresa Kuchler, Johannes Stroebel and Arlene Wong
Additional contact information
Michael Bailey: Facebook
Drew Johnston: Harvard University
Theresa Kuchler: New York University

Working Papers from Princeton University. Economics Department.

Abstract: We use de-identified data from Facebook to study the nature of peer effects in the market for cell phones. To identify peer effects, we exploit variation in friends’ new phone acquisitions resulting from random phone losses. A new phone purchase by a friend has a large and persistent effect on an individual’s own demand for phones of the same brand. While peer effects increase the overall demand for phones, a friend’s purchase of a particular phone brand can reduce an individual’s own demand for phones from competing brands, in particular if they are running on a different operating system.

Keywords: Peer Effects; Demand Spillovers; Social Learning (search for similar items in EconPapers)
JEL-codes: D4 L1 L2 M3 (search for similar items in EconPapers)
Date: 2021-01
New Economics Papers: this item is included in nep-ban, nep-net, nep-tid and nep-ure
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Downloads: (external link)
https://pages.stern.nyu.edu/~jstroebe/PDF/BJKSW_PeerEffectsProductAdoption.pdf

Related works:
Journal Article: Peer Effects in Product Adoption (2022)
Working Paper: Peer effects in product adoption (2019)
Working Paper: Peer Effects in Product Adoption (2019)
Working Paper: Peer Effects in Product Adoption (2019)
Working Paper: Peer effects in product adoption (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:pri:econom:2021-66

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